Tuesday, July 8, 2014

Modi Sarkar Can Save Sick Banks And Make Bank Employees Happier

In the name of merit,   Management of public sector banks has spoiled Human resource. Arbitrary promotion , whimsical rejection in promotion process, inhuman transfers to remote places and inhumane treatment with junior officers  have not only demoralized the working staff but  vitiated the work culture and has caused much frustration to experienced and real performer but have given much value to flatterers and corrupt officers.

Culture of flattery is wide rampant in banks as it is prevalent in government offices. This is why really good banker does not apply for promotion. Banks give promotion to those who apply even if he is having now knowledge and no experience. This is root cause why volume of stressed asset and fraud have sharply increased .Public sector banks are facing erosion in their asset quality, in profit and also in capital. Human Resource Department has become non-functional in all banks. Officials working IN HRD or in Industrial relation or in Vigilance department are virtually puppet in the hands of top officials.

Human Resource Development policies are not at all good or policies are not executed by top officials honestly in the interest of bank, rather all policies are used as a tool to serve their vested self interest. Some officers are not getting promotion even in two or three decades but some others get five or six promotion in a decade or two. Juniors and inexperienced now monitor seniors and experienced. Stagnation in increment and low pension future has further given frustration to real performers. Officers who do not possess enough knowledge and experience are made Head of Branch or Head of a circle. Officers who are clever in flattery and who know the art of speaking have become leaders of banks even if they are corrupt and less efficient.

There is time bound promotion and no stagnation in pay scale of central government employees but in banks pay scale and promotion process both gives punishment to seniors and award to juniors. Even recruitment process has become a source of doing favouritism . Kith and kin of officials are directly recruited in higher scale to give them higher emolument as soon as they join the bank. This is why officers working for last three decades are getting less salary than those who are recruited in last two to five years in higher scale. Hundreds of letters and several cases have been filed in various court  during last three decades, but clever officials of bank management mange these court cases in such a way that they never reach to a logical end.

Whenever top officials of banks are asked why health of banks is weakening day by day, they point out the accusing finger towards global recession or adverse political and economic situation in the country or administrative shortcomings or interference by politicians in their functioning. In the past, say before 1991 they used to say that their hands are not free and they are forced to recruit and promote bank staff as per tradition rules and policies. Government gave bank management complete freedom in the name of reformation in the year 1991. In reformation era banks were allowed to decide their interest rate structure, investment policy, and recruitment and promotion policy in the interest of their bank. But it is unfortunate that during last 24 years, health of almost all public sector bank has deteriorated too much and private banks have slowly and gradually snatched the business of public sector banks.

It is pity and disheartening that the medicine that is required to cure the ailing public sector banks is considered as cause of sickness. Banks should value experienced officers to save the banks but unfortunately management of bank discard seniors and juniors are made Branch head or Regional Head. This is why quality of lending and quality of operation has faced sharp deterioration in last two decades of freedom and volume of stressed assets in almost all banks have seen upsurge and are facing threat of loss. It is true that legal and administrative machinery in the country is also weak and ineffective in recovery of loan from defaulters, but if Human resource is devoted and honest, there is no doubt that standard of banking will improve. Human resource who can make or mar the bank are facing under reign of injustice and facing severest torture without any judicious reward.

To add fuel to fire, wages of bank staff have faced sharp erosion as com0ared to employees of central government employees. It is astonishing that revision of wages of bank staff have been pending for last two years but Indian bank Association as well as Ministry of “Finance are silent spectator of such inordinate delay. After all, this indecisiveness and negligence on the part of top officials of bank as also that of GOI have adversely affected the future of banks and that of depositors, investors and customers of these banks.

Politicians under the regime of UPA damaged these banks for political gain . But now it is expected that Modi Sarkar will take corrective steps to salvage these banks from further damage.I hope Mr. Naredra Modi ,Prime Minister and Mr.Jaitley Finance Minister will take all corrective steps to expedite wage revision and to improve work culture in banks so that they may compete with private banks.

If bank employees are happy and if they all feel joy in working , there is no doubt that banks will rise by leaps and bounds.. Only Happy workforce can ensure growth and safety of banks.On the contrary if officers are subjected to torture and humiliation , cases of regignation,fraud, bad debts , suicide and unnatural death of bank staff have to rise

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